BuzzFeed stock surge 150% after announcing use of ChatGPT's Open AI to help write content

BuzzFeed, a digital media company, is pouring money in AI-generated content. According to Forbes, the company intends to create quizzes for the website using ChatGPT's Open AI as the first step towards creating more content using the cutting-edge learning engine within ChatGPT.

BuzzFeed stock surge

BuzzFeed stock surged more than 150% on Thursday on reports that the digital media company is making moves to boost its editorial content using AI from the creator of ChatGPT.

Shares of the company were up as much as 203% on Thursday, trading at $2.88.

In a similar development, the business recently declared it will reduce its employment by around 12%.

BuzzFeed CEO Jonah Peretti wrote in a memo to employees, "In 2023, you'll see AI inspired content move from an R&D stage to part of our core business, enhancing the quiz experience, informing our brainstorming, and personalising our content for our audience"

"The creative process will increasingly become AI-assisted and technology-enabled,” Peretti shared in the memo, according to Reuters. "

If the past 15 years of the internet have been defined by algorithmic feeds that curate and recommend content, the next 15 years will be defined by AI and data helping create, personalize and animate the content itself... we see the breakthroughs in AI opening up a new era of creativity that will allow humans to harness creativity in new ways with endless opportunities and applications for good.

In publishing, AI can benefit both content creators and audiences, inspiring new ideas and inviting audience members to co-create personalized content,” according to reports in Variety.

BuzzFeed, which went public via SPAC merger in 2021, has faced financial difficulties in recent years.

The company announced cuts to its news division in an effort to become more profitable last year, but the stock has continued to decline. BuzzFeed in December laid off 12% of its staff, axing around 180 roles.